E.ON AND GAZPROM PLANNING ACQUISITIONS IN RUSSIAN ELECTRICITY SECTOR.

Europe Energy, December, 2004

The German energy group E.ON and the Russian gas giant Gazprom are planning joint acquisitions in the electricity sector in Russia. Strategic partners, Gazprom and E.ON signed a co-operation memorandum in July to develop joint projects in the gas sector and in the production and distribution of electricity in Russia.

Gazprom announced in the Summer that it planned to expand its activities beyond the gas sector. It recently established an oil subsidiary, Gazpromneft, and has accumulated stakes in the Russian electricity distribution monopoly SEU (about 10%) and the regional electricity company Mosenergo (25%).